Calculate the cost of adding the bathroom and how that will translate to increased equity on resale or exit. 

I mean, what's your kids education worth?  

We plan on renovating each unit as they come available, increasing rents to market.

A market rent of $2,700 for a house worth $450,000 seems like there should be room for rent to run up in the coming years.

At that point, I want to re-evaluate the market and determine if we're happy with that, or if there should be some small increases after.

As they say, your network will be your net-worth.7.

Does anyone think it is worth the risk to invest in this area?

Also, keep in mind that as time goes on, unless there is a major catastrophic financial crisis, rents go up, your equity increases over time and the loan gets paid down, and your cash flow becomes higher. 

In your county values may have increased 20% making your common level ratio 1.2.

If you got a deck from a broker 6 months ago and the deal is still showing available on their website, it is worth a follow-up call to see where things are.